Question

Katrina is starting her own business producing all-natural beverages. She must use
to create her product.

The water that she is using to create her beverage line is an example of
.

The number of employees required to produce her beverage line is an example of
.

The rent money she pays for a factory to produce her beverage line is an example of
.

Answer 1

Katrina is starting her own business producing all-natural beverages. She must use factors of production (resources) to create her product.

The water that she is using to create her beverage line is an example of land (a natural resource).

The number of employees required to produce her beverage line is an example of labor.

The rent money she pays for a factory to produce her beverage line is an example of a fixed cost (and, more broadly, payment for the use of capital).